In 2014, Job Corporation, a calendar year taxpayer, has AMTI (before adjustment for adjusted current earnings) of $7 million. If Job Corporation's ACE is $16 million, its tentative minimum tax for 2014 is:

Question

Quizplus · Accepted Answer

To calculate the tentative minimum tax, we need to apply the formula: 0.1 x (AMTI - ACE) + ACE. 
Plugging in the numbers, we get: 
0.1 x ($7 million - $16 million) + $16 million = $2.75 million. 
Therefore, the tentative minimum tax for Job Corporation in 2014 is $2.75 million, which is option B.

In 2014, Job Corporation, a Calendar Year Taxpayer, Has AMTI